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₹2000 currency notes to be withdrawn gradually?

India stopped printing the ₹2,000 rupee currency notes. The banks may limit and slowly reduce its circulation. This means that the currency notes will be phased out gradually, the ₹2,000 currency notes is very much still legal tender.

The decision came after the Narendra Modi government became suspicious of black money hoarders stocking high denomination notes to evade tax.

The new ₹2,000 currency notes were first unveiled after demonetisation that occurred on 8th November 2016. The government of India withdrew the older ₹500 and ₹1,000 currency notes to crack down on black money circulation.




The opposition parties had already warned the Modi government about tax evasion and money laundering when high denomination ₹2,000 notes were issued.

However at that point in time the Government gave a deaf ear to experts and the opposition, today their fears seem to have come true.

The RBI has stepped up the printing of the ₹500 rupee currency notes to balance out the outflow.



Inputs from theprint.in


 

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